Tax Residency Rule Changes Are Back On for Expats? – after there was no mention of the proposed changes to the tax residency rules in the recent Federal Budget the market intepreted this as the changes were to be put on the back burner especially after the Australian Taxation Office released their updated Tax Ruling on non-residency rules for Australian expats.
Fast forward a month and the Australian Treasury department has released a Consultation paper asking for feedback on the Board of Taxations proposed changes.
The outcomes of consultation will help to inform the Government’s decision on whether to proceed with this measure so it is important that if you would like to submit your feedback that you have your say.
We will certainly be submitting a response and once this has occured we shall share it with everyone.
The consultation period runs up until the 22nd of September 2023.
As a summary these changes will affect most Australian expats once implemented and will be based on a Primary Test as well as a Secondary Test.
The Primary Test states that if an Australian expat spends more than 183-days in Australia the they will be an Australian tax resident.
The Secondary Test applies to individuals who have been in Australia for more than 45days but less than 183-days in an income year.
The test includes a test for commencing residency and ceasing residency. The secondary test would also focus on four factor tests which must be satisfied for an individual to be deemed a tax resident of Australia.
You can learn more about the proposed changes by reading our article we pubclished previously when this was released – https://atlaswealth.com/news/changes-to-the-australian-tax-residency-rules-affecting-expats/